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What Are Cryptocurrencies

The crypto industry is quite engaging at the moment. Although the prices of these speculative digital tokens keep fluctuating in the market, activities around them have been prominent for quite some time. The crypto market is highly volatile. Thus, it is difficult for people to make up their minds about investing in this new world currency. 

Cryptocurrencies are digital currencies that run on a decentralized ledger called a blockchain. A blockchain is a distributed database that runs on a network of computers. Cryptocurrency is secured by cryptography, making it almost impossible to hack or counterfeit. This digital currency allows direct transactions between the parties involved, thus eliminating the need for intermediaries. However, cryptocurrencies have no intrinsic value and are worth what people are willing to pay in the market. 

Origin

The cryptocurrency was developed by an anonymous person or group called Satoshi Nakamoto in 2008. Satoshi is also the name given to the smallest unit of bitcoin. It was soon implemented upon its release as open-source software. The first cryptocurrency developed was Bitcoin, and several others surfaced quickly after. Today we have Ethereum, Dogecoin, Luna, and many others.

How Does Crypto Work

As mentioned earlier, cryptocurrencies run on blockchain technology. Blockchain is a kind of database that records all the transactions in a network. Bitcoins or all other types of cryptocurrencies are created through a mining process. In this process, crypto miners must solve complicated mathematical problems using highly sophisticated hardware to generate coins. Users buy and store these coins in their wallets and then trade them at different crypto marketplaces. 

Different Types Of Cryptocurrencies

You must have heard about various crypto coins, such as Bitcoin and Ethereum, but crypto is not only limited to only coins.

  • Coins: These are your traditional cryptocurrencies used as a payment method. Coins run on the blockchain.
  • Altcoins: Altcoins are all the coins created as alternatives to bitcoin
  • Tokens: Tokens represent digital ownership of any particular asset on the blockchain. On the blockchain, there are many different kinds of tokens, such as utility, security, payment, exchange, and so on.
  • Stablecoin: These are also a kind of token, but their value is supposed to be the same.
  • NFT: Cryptocurrencies with a unique identity and limited issuance.

Advantages

  • Crypto is not centralized. Therefore, it has no single governing body. It is self-governed and regularly updated, thus keeping a transparent profile with its users.
  • Cryptocurrency takes care of your privacy and security. This is because blockchain technology is based on complex mathematical problems that are hard to decode, making crypto transactions more secure than your ordinary electronic transactions.
  • Also, crypto comes with protection from inflation as almost all cryptocurrencies are launched with a fixed amount, and thus, their value will increase in the long run.
  • Making payments via cryptocurrencies has become a straightforward process nowadays. Today we have a long list of wallets where you can store your crypto and many exchanges where your crypto can be exchanged with minimal transaction fees. The LCX exchange is the most secure crypto trading platform you’ll find in the market. It is regulated and offers a variety of digital assets on its platform.
  • Crypto makes it easier to send money overseas by eliminating the need for third parties. Therefore, removing the extra transaction costs. 
  • All kinds of transactions, be they international or domestic, are super fast using cryptocurrencies.

What’s New In Crypto

Crypto has been around for a while now. Every new year brings new crypto assets into the market. New crypto coins are flooding the industry every now and then. From animal names like Dogecoin, mammoth and Wiki cat to some really weird crypto concepts such as Bitcoen-the first Jewish cryptocurrency, Cyberfunks-based on the famous band cyberfunks, you can find anything and everything in the market. Do you know that Trump has his own cryptocurrency? It is called Trumpcoin. And when Trump is getting his personal crypto, then why would Putin not join the charade. Russian President Vladimir Putin also has his own crypto, not one but two: Putincoin and Putin Classic. In this rush to launch new tokens on the market, LCX is assisting companies in launching tokens in a compliant manner, and the LCX Token Sale Manager has recently conducted a number of token sales. LCX’s most recent token sales are DGMV, VIS Token, and NMKR.

Conclusion

The crypto industry is still a new industry that has seen tremendous growth over the years. Nobody wants to miss out. Everyone wants to participate in this new global transaction system. But, one needs to weigh the risks associated with the investment before committing a considerable amount of money to it. Thus, investing in a secure marketplace such as the LCX exchange is crucial, approved by eight major blockchain regulations by the Financial Market Authority of Liechtenstein. LCX exchange provides its users with a safe and compliant trading platform for a long list of digital assets.

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